What is the link between business strategy and HRM?

Answer 1

Strategies are there to guide organizations or to show the direction they should move into. A typical strategy would have a mission entailing its reason for existence and strategic objectives. Moreover it would also have to look at the resources at its disposal and decide how to utilize these resources in order to achieve its objectives. Human capital is one such resource. Meaning that an organization would not be able to achieve its strategic objectives if the required human resources are not in place. Therefore it is critical that human resources departments are consulted when a business strategy is developed in order to have an understanding between human resources and management. Furthermore, it is critical to have the right skill level to achieve objectives and HRM is the one to provide it. HRM need to understand the challenges that the organization experience and provide the necessary advice and skills to the organization.